High spirit: IMFL sales may reach pre-Covid levels by end of fiscal CIABC

Amar Sinha, chief operating officer of Radico Khaitan, said most Indian states are showing growth over the last year and state governments have also extended the required support and business-friendly policies.

IMFL sales had declined 12% year-on-year in FY21 due to the lockdown and increase in taxes. Total sales of IMFL products in 2020-21 were 305 million cases (9 litres each).
IMFL sales had declined 12% year-on-year in FY21 due to the lockdown and increase in taxes. Total sales of IMFL products in 2020-21 were 305 million cases (9 litres each).

Consumption of alcoholic beverages in the country is recovering and likely to reach pre-pandemic levels by the end of the fiscal.

Sales of Indian Made Foreign Liquor (IMFL) for the first six months of the current fiscal were 23% higher year-on-year and are expected to recover further in the October-December quarter riding on the festive season, according to the Confederation of Indian Alcoholic Beverage Companies (CIABC), the representative body of leading Indian alcohol beverage companies.

IMFL sales had declined 12% year-on-year in FY21 due to the lockdown and increase in taxes. Total sales of IMFL products in 2020-21 were 305 million cases (9 litres each).

“The April to June quarter saw a growth of above 50% largely on account of reduced base in 2020-21 … In the July to September quarter, sales growth normalised to a more sustainable (+8%) level over the previous year. It may be recalled that in the previous year (2020), this period had no Covid-led closures, except in on-trade in some states,” Vinod Giri, director general of CIABC, said.

He said the government and industry were better prepared this year to mitigate the impact of Covid-19.

Amar Sinha, chief operating officer of Radico Khaitan, said most Indian states are showing growth over the last year and state governments have also extended the required support and business-friendly policies.

“The onset of the fiscal was on an uncertain note owing to the peak of the second wave. By the second quarter of the fiscal, the market was on the road to recovery. It picked up pace attributed to the temporary nature of the Covid-led restrictions, the emergence of e-commerce, and the increase in at-home consumption,” he said.

According to Investec Capital Services, the 335 million-case IMFL market in India is estimated to have grown at 5% CAGR in value terms over the last five years. Despite favourable demographics and continued premiumisation, the reasons for the lower growth have been regulatory and taxation related.

“Though the sales have recovered significantly over the previous year, they are yet to wipe off the Covid-19 effect. In comparison to the period prior to the pandemic, ie April-September 2019, IMFL sales on the all-India basis are still 13% behind. However, some states have beaten this trend and are ahead of the pre-Covid times,” Giri said.

“Further, the fact that many states have withdrawn the Covid-19 cess imposed in 2020-21 and new taxes were not imposed on account of the pandemic this time, helped sales recovery,” he said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express Telegram Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.